Too often, I hear on the news or television the doom and gloom of the media in regards to the current housing market. If one were to listen solely to the media, you would feel as though your house would never sell, and if you were a buyer you could practically pick up a house for a song because the market was so soft.
While some of this is true on the national level, thankfully reports have confirmed that on the local level we are not running with the rest of the country. The NAR put out a price analysis last month that was very interesting… “Despite some media reports of the worst housing market conditions since the early 1990s, or even since the Great Depression, the recent home price declines have been negligible at the local level. Unlike past local housing downturns, which were accompanied with severe job cuts, the local economy continues to add jobs.”
In our area, jobs are consistently being added and companies are being brought to the area along with their employees. In addition, mortgage rates have been falling recently and stood near a historic low of 6.5% for prime borrowers. According to journalist David Reed, rates could be even more favorable in upcoming months as the Federal Reserve cuts the federal funds rate in late 2007 and in 2008 as there are clear signs of contained inflation.
The fixed mortgage rates have not been this low in over a year and if the trend continues we could see rates break two year lows this month. According to history, mortgage rates are ready for a “correction” and they could move back up; so if you have the ability to move on a home and lock in, I would advise it.
All in all, the housing market in our area is still doing well. It is not skyrocketing like we have seen in the past few years, but it is holding strong and will continue to do so as long as people are moving to area through their jobs, retirement, family etc.
Click on the Summary of Activity to see the full chart…
Information taken from RealtyTimes article “Interest Rate Update by David Reed &
National Association of Realtors Price Analysis for October 2007 for the Charleston, SC Metro Area.